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TA 7077-LAO: Strengthening Public Financial Management


As part of ADB’s continued support to the Government of the Lao People's Democratic Republic (Lao PDR) this TA sought to improve overall Public Financial Management by undertaking capacity building and automation programs in the Ministry of Finance and other relevant ministries, in line with reviews by various international donors which have emphasized the need for improving public financial management and public expenditure policy for the country to achieve its development goals. The output of the TA was to ensure that the country was able to achieve the level of poverty reduction and economic growth set out in its development goals. The TA consequently also facilitated the achievement of LAO PDR’s millennium development goals. The capacity building exercise involved training in issues such as expenditure planning, budgeting and accounting for the staff of various ministries including the Ministry of Finance, Ministry of Planning and Investment, Ministry of Agriculture (MOA), Ministry of Education (MOE), Ministry of Health (MOH), Ministry of Public Works and Transport (MPW&T), Bank of Lao and in selected finance departments of the provinces. To monitor the success of the capacity building exercise skills improvement indicators were also identified.


The consultants of MSL implemented this ADB TA to support the Government’s efforts to deepen the reforms in Public Financial Management and, by strengthening the Medium-Term Fiscal Framework (MTFF) and Medium-Term Expenditure Framework (MTEF) processes, allowed it to respond to the challenge of aligning public expenditure policies with the pro-poor priorities set out in its National Socio- Economic Development Plan.

The consultants made a capability assessment of relevant Government staff, extensive capacity building exercises, and established skills indicators, and to track progress throughout the TA, software and database development for various relevant Government bodies to ensure more efficient data transmission, sharing and management. Over time, the consultants instilled an understanding and awareness of international best practices in budgeting, reporting and monitoring, macroeconomics, public finance and change management among the relevant staff of the government at central and provincial levels.

A web-based budget submission was also initiated: this initiative enabled the budget user to provide budget submission via a web portal. Work on the web-based submission focused on two aspects – content management and MTEF form management.

Timeframe: September 2008 - May 2011

Realated Countries: Laos

Client(s): ADB

Categories: PFM and Financial Management and Audit and Accounting, Capacity Building and Management Reform and Human Resources Management

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